Would the housing market crash if we eliminated the home mortgage interest tax credit? Real estate agents and mortgage-related businesses argue it would. Basic economic theory says there would be at least some decline in home values. But economic historian…
Averages are misleading, from taxes to actuarials
Everybody knows what the word “average” means and that it is the most widely used simple statistic. But it can be highly misleading. That occurred to me in two recent news reports. One article a week ago detailed how households…
Fix Social Security? Why shouldn’t everyone sacrifice?
To put Social Security on a sound financial footing you either need to raise taxes or cut benefits. A recent Associated Press-GfK poll indicates more Americans would raise taxes or raise the retirement age rather than cut benefits. The poll,…
Presidential politics’ affect on Fed? Only slight
Will the 2012 presidential election affect the Federal Reserve in any way? If so, why aren’t we talking about it? Those astute questions from a reader illustrate the craziness of contemporary U.S. politics. Over the past five years, actions by…